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sir, I’m confused as to if EoM paragraph relates to modified or unmodified audit report. in different sources I’ve found both implications.
then, at last, in the exam paper of June 2014 Q5 (d) I see this:
‘The directors of Clarinet have agreed to make going concern disclosures; however, the impact on the audit report will be dependent on the adequacy of these disclosures. If the disclosures are adequate, then the audit report will be modified as an emphasis of matter paragraph would be required.
The paragraph will state that the audit opinion is not modified, indicate that there is a material uncertainty and will cross reference to the disclosure note made by management. It would be included immediately after the opinion paragraph’as I understand, the audit report might be modified while the audit opinion in it unmodified. so, what are the main types of audit report and main types of audit opinion then?
The opinion can be unmodified or modified.
If modified it can be qualified (‘except…for’), adverse or a disclaimer.
Quite separate from what happens in the opinion, there can be an emphasis of matter paragraph or other matters paragraph. These do not modify the opinion though they have ‘modified’ the report.
See Cht 6 of the current F8 notes on this site
HTH
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